ABSTRACT

The allocation of funds to schools is a policy lever available to governments pursuing equitable and inclusive school systems. This is typically achieved by providing additional funding to schools enrolling students with characteristics that increase the cost of achieving target outcomes.

International school funding reforms have frequently targeted funding to schools serving students at risk of educational failure. School funding reforms in several United States school systems have introduced weighted student funding. This approach sees funding allocated to schools based on student numbers and their characteristics.

Focussing upon the State of Victoria in Australia, equity and inclusiveness underpin the strategic goals for school education. Analysis of school funding progressivity in Victoria for the period 2011–2021 has mixed findings. Funding allocated by the Victorian and Australian Governments to government schools has become increasingly progressive. However, progressivity between school sectors is limited, largely due to the role of tuition fees charged by non-government schools.

There is a need to re-assess funding models to ensure they target factors influencing equity and inclusiveness. This work needs to be informed by an improved conceptualisation of equity and inclusiveness, and the costs of interventions that can address these.